In Nigeria, an individual is considered poor if their annual consumption expenditure falls below specific thresholds. These thresholds are defined by two distinct poverty lines: an upper poverty line of ₦395.41 per person annually, and a lower poverty line of ₦197.71 per person annually.
Understanding Poverty Thresholds in Nigeria
Poverty in Nigeria is measured using consumption-based poverty lines, which reflect the minimum amount of money an individual needs to spend on goods and services to avoid being classified as poor. These lines are crucial for assessing the scale of poverty and guiding national development strategies.
The two main poverty lines are defined as follows:
| Poverty Line | Annual Amount (Per Person) | Basis of Calculation |
|---|---|---|
| Upper Poverty Line | ₦395.41 | Equivalent to two-thirds of the mean value of consumption |
| Lower Poverty Line | ₦197.71 | Equivalent to one-third of the mean value of consumption |
The lower poverty line of ₦197.71 per person annually identifies individuals experiencing extreme poverty, whose consumption levels are significantly below the national average. This group often struggles to meet basic needs such as food, shelter, and clothing.
The upper poverty line of ₦395.41 per person annually captures a broader segment of the population facing poverty. While their consumption might be higher than those in extreme poverty, it remains insufficient to meet a comfortable standard of living, placing them within the general category of poor.
These thresholds, derived from the mean value of consumption, provide a consistent framework for measuring poverty, enabling policymakers to track progress and implement targeted interventions aimed at improving livelihoods across the nation. For more general information on poverty in Nigeria, you can refer to resources from organizations like the World Bank.
